German group VNG to receive more Algerian gas from January 2027

VNG, a German gas group based in Leipzig, plans to receive more natural gas from Sonatrach from 1 January 2027, DNAlgerie reported.

VNG began buying gas directly from Sonatrach in 2024, becoming the first German group to do so.

The new arrangement comes from a deal signed in Berlin on 16 July, during an official visit to Germany by President Abdelmadjid Tebboune.

Nour Eddine Daoud, chief executive of Sonatrach, and Ulf Heitmüller, chairman of VNG's management board, signed the agreement. Mohamed Arkab, Algeria's minister of hydrocarbons, and Frank Wetzel, German state secretary for economy and energy, attended the ceremony.

The companies have not disclosed the extra volumes, the prices or the length of the new commitment. It is therefore not yet possible to say how much Algerian gas exports to VNG will rise from 2027.

Heitmüller said that having several suppliers was necessary to meet the needs of its customers. Wetzel said Algeria was a reliable partner for Germany and had a role in supplying gas to the European Union.

The two companies are also working on co-operation in sectors that are expected to play a growing role in energy trade between North Africa and Europe. A memorandum of understanding signed on 17 June provides for studying co-operation on green hydrogen, ammonia and cutting methane emissions.

Both companies are also involved in the Algeria to Europe Hydrogen Alliance (ALTEH2A). The SoutH2 Corridor project aims to build infrastructure to carry hydrogen between North Africa and several European countries, and both companies are linked to it.

According to DNAlgerie, Algeria could take part in new energy supply routes, beyond its traditional gas exports. Algeria has a long record of exporting gas to Europe and wants to keep its place on that market, the site reported.